The Malaysian Insight

INTERIM prime minister Dr Mahathir Mohamad today convened a meeting with the Finance Ministry’s top officials to discuss the Covid-19 fiscal stimulus package.

Photos of the meeting, where Treasury secretary-general Ahmad Badri Mohd Zahir was also present, were uploaded to Dr Mahathir’s official Facebook page.

“Tun Dr Mahathir Mohamad has just completed a meeting with the top officials of the Finance Ministry to discuss the economic stimulus package. The initiative will be announced soon,” the caption said.

Dr Mahathir was initially scheduled to announce the economic package on February 27.

Former deputy international trade and industry minister Ong Kian Ming told The Malaysian Insight yesterday that funding for the move was yet to be approved at the time of the collapse of the Pakatan Harapan government and the cabinet’s dissolution on Monday.

Former finance minister Lim Guan Eng was supposed to present the package to Dr Mahathir on February 24, which also happens to be the day the latter resigned as prime minister.

Lim said in a statement yesterday said he finalised the package on Sunday, his “last full day as finance minister” and was supposed to present the package on Monday.

However, he met the interim prime minister yesterday to discuss the matter.

The DAP secretary-general said Dr Mahathir has indicated that the economic stimulus package will go ahead on a date to be announced by him in his capacity as interim prime minister.

Tourism players and small and medium industries told The Malaysian Insight that they want Putrajaya to expedite the announcement of the fiscal stimulus package to cushion the impacts of the virus outbreak as soon as possible.

They said the business community was dismayed at the turn of events on the political landscape, where political manoeuvring last weekend led to the collapse of the Pakatan Harapan government and Dr Mahathir’s resignation as prime minister.

Malaysian Association of Hotels (MAH) chief executive officer Yap Lip Seng said the stimulus package is already late, given that the coronavirus outbreak began in December and almost immediately impacted the tourism industry through scrapped hotel bookings, cancelled flights and travel bans.

 “While we understand that certain items cannot be implemented without ministerial power, it is best that the administration first roll out what can be immediately executed, before the industry falls deeper into the current crisis,” Yap told The Malaysian Insight.

As it stands, hotels are already slashing extra expenses such as overtime, allowances and incentives where allowable, under the law.

Some establishments are holding voluntary unpaid leave as well as pay cuts, Yap added.

MATTA president Tan Kok Liang said the tourism industry is already crippled by travel bans or restrictions, and even without these obstacles, consumer fear of travel over exposure to the virus has badly affected sentiment.

“The Treasury, or Secretary-General of the Ministry of Finance, should be able to provide an indication on the stimulus package to the industry, with the approval of Dr Mahathir Mohamad,” he said of the absence of a working government, as the civil service is still functioning.

SME Association Malaysia president Michael Kang meanwhile said without a stimulus package, small and medium enterprises will have to turn to banks for assistance.

“SMEs are looking forward to packages where they are expecting help to adapt without having to layoff staff,” he said.

“Perhaps the interim administration could consider a three-month basic economic stimulus package. It cannot be all or nothing. After the new government is established, we can discuss a more comprehensive economic stimulus package,” Kang suggested.

The Prime Minister’s Office, when contacted, could not confirm a date for the announcement. – February 26, 2020.